The won-dollar exchange rate closed slightly higher amid geopolitical risks stemming from the Middle East and a stronger dollar. However, gains narrowed from intraday highs, confirming resistance at upper levels.
On Tuesday, the won-dollar exchange rate ended the weekly session at 1,508.9 won per dollar in the Seoul foreign exchange market, up 1.9 won from the previous trading day. The rate opened at 1,508.6 won, up 1.6 won.
Shortly after the open, the rate surged to 1,512.4 won, testing near its year-to-date high, but subsequently gave back some of its gains. The intraday low reached 1,503.3 won. The rate's advance narrowed as the dollar turned weaker.
In early trading, safe-haven demand driven by heightened tensions in the Middle East fueled dollar strength and pushed the rate higher. However, once the rate entered the 1,510-won range, awareness of the upper boundary spread and corporate dollar selling flowed in, limiting further gains.
With external uncertainties remaining elevated, large-scale net selling by foreign investors in the KOSPI market also limited the rate's downside.
